More than £3m of public money is set to be handed over to plug a funding gap in hugely controversial plans to redevelop land around St James’ Park.
The North of Tyne Combined Authority (NTCA) plans to give developers almost £3.5m to kickstart the building of new apartment blocks, offices and a hotel in Strawberry Place. The proposals were approved in 2019, despite a backlash from Newcastle United fans, but have since stalled as previous developer High Street Group fell into administration.
Former NUFC owner Mike Ashley sold the prime site, where redevelopment plans are now controlled by investment group Reditum Capital, much to the anger of supporters. In November 2019, city councillors approved £120m plans to transform the area – despite the opposition of the Newcastle United Supporters’ Trust and MP Chi Onwurah, who warned that the move could one day force the football club to move to a bigger ground away from its iconic city centre location.
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Since the club’s takeover by a Saudi-led consortium in 2021, the new ownership has spoken of wanting to expand St James’ Park and working with Newcastle City Council to explore possibilities. The lack of construction work on the Strawberry Place land since the council granted planning permission for the development has sparked hope among some fans that the club could now try to buy it back and pursue an extension of the Gallowgate End.
But the region’s leaders now look set to sign off on grant funding that will help the developers finally get building on the site, which includes the car park next to St James’ Metro station. North of Tyne mayor Jamie Driscoll and council leaders from Newcastle, Northumberland, and North Tyneside will be asked on Tuesday to sign off on spending almost £3.5m of the NTCA’s Brownfield Housing Fund on the development to help cover escalating costs.
A report states: “The funding will help address the viability gap caused by site remediation and high abnormal costs, including the need for retaining structures, service diversions and highways costs.” It adds that the new development, which includes 328 flats, an office block, and a 213-bedroom hotel, will support more than 1,700 construction jobs and put £670m into the regional economy within 10 years.
In 2021, Reditum became the ‘person with significant control’ at Strawberry Place Developments Limited, a former High Street Group company that was leading the scheme. Reditum told the Local Democracy Reporting Service: “Strawberry Place Developments Ltd have been working hard for the last two years to bring forward the successful redevelopment of this site.
“We appreciate the support of all our partners and stakeholders in helping to bring this site back into use, provide new jobs and create much needed new homes and business space.”
There has been major construction in Strawberry Place to build the newly-opened headquarters of the Home Group, but those plans were entirely separate from the other development planned next to it.
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